THE CASE OF EXPORT CARTEL EXEMPTIONS: BETWEEN COMPETITION AND PROTECTIONISM

Most competition laws do not prohibit anticompetitive conductthat affects foreign target markets as long as there is no spillover effect on the home market. The U.S. in particular justifiesthis leniency towards export cartels by the aim of increasingefficiency in target markets that are suffering from high entrancebarriers for importers. Attempts to use the legal regime ofthe WTO to overcome private restrictions of competition arelikely to fail, because of the fundamental differences betweentrade policy and competition policy. Although a multilateralcompetition policy would be best suited to challenge exportcartels, the current state of the political debate makes itmore likely that second-best solutions such as capacity buildingin lesser developed target states will have to be established.